Share Fraud Warning

 

Share fraud includes scams where investors are called out of the blue and offered shares that often turn out to be worthless or non-existent, or an inflated price for shares they own. These calls come from fraudsters operating in ‘boiler rooms’ that are mostly based abroad.

While high profits are promised, those who buy or sell shares in this way usually lose their money.

The Financial Services Authority (FSA) has found most share fraud victims are experienced investors who lose an average of £20,000, with around £200 million lost in the UK each year.

Protect Yourself

If you are offered unsolicited investment advice, discounted shares, a premium price for shares you own, or

  1. Get the name of the person and organisation contacting you
  2. Check the FSA Register at http://www.fsa.gov.uk/fsaregister to ensure they are authorised.
  3. Use the details on the FSA Register to contact the firm.
  4. Call the FSA Consumer Helpline on 0845 606 1234 if there are no contact details on the Register or you are told they are out of date.
  5. Search our list of unauthorised firms and individuals to avoid doing business with.
  6. REMEMBER: if it sounds too good to be true, it probably is!

If you use an unauthorised firm to buy or sell shares or other investments, you will not have access to the Financial Ombudsman Service or Financial Services Compensation Scheme (FSCS) if things go wrong.

Report a Scam

If you are approached about a share scam you should tell the FSA using the share fraud reporting form at http://www.fsa.gov.uk/scams, where you can find out about the latest investment scams.

You can also call the Consumer Helpline on 0845 606 1234

If you have already paid money to share fraudsters you should contact Action Fraud on: 0300 123 2040

February 2012